What is a Portfolio Career? Pros & Cons
Portfolio careers have become a popular option for people between jobs or looking to become self-employed. Like all work, there are pros and cons to this approach.
The rise of technology has led to an increase in workers who consider themselves self-employed, especially in a post-pandemic world. Many Americans have begun to work what is considered a portfolio career, which is a combination of income streams, usually in the form of multiple part-time jobs or freelance projects, that ultimately results in the equivalent of a single full-time career path.
Some common alternative names for a portfolio career include:
- gig work
- freelancing
- side hustles
Although portfolio careers are becoming more common, they might not be right for everyone.
What Is a Portfolio Career?
A portfolio career is a combination of multiple jobs and careers. For most people, this means utilizing the gig economy and working for companies like DoorDash, Uber, Lyft, or other similar jobs where you pick your hours, but there is still income.
Unlike a traditional career, a portfolio career doesn't consist of working for a single company or yourself in only one industry. Sometimes, a person works a part-time job and supplements this with side hustles.
One of the things that makes a portfolio career attractive to some workers is that it allows them to use a variety of different and new skills that they wouldn't get a chance to use in a traditional career. For people looking for a career change or to enhance a skill set that they already have, portfolio careers allow them to practice and develop while still making money.
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What Are the Characteristics of a Portfolio Career?
If you're trying to identify a portfolio career, there are a few key characteristics that you should look out for.
Most people employ portfolio careers while being in a job search or career change. Some people do use portfolio careers as a substitute for a traditional career, but they are usually temporary between full-time jobs.
Another hallmark of portfolio careers is having multiple unique income streams. Having more than one job at a single time isn't automatically a portfolio career, but people who eschew full-time employment in one career for multiple part-time or freelance projects almost always have portfolio careers.
Portfolio Career: Pros and Cons
As portfolio careers become more common, many people ask if this is the future of work or just a fad. Before trying to start a portfolio career of your own, you should learn more about the pros and cons of this style of working.
Benefits of a Portfolio Career
Portfolio careers are becoming more popular for many reasons, but one of the biggest ones is the work-life balance. Because most gig workers set their hours, it's much easier to maintain a healthy work-life balance including family time, adequate sleep, and scheduling appointments. This also has mental health benefits for people who are overwhelmed by the pressures of a full-time career path.
Another advantage to a portfolio career for entrepreneurship-minded people is the ability to work on a startup while still having a stream of income. Many new businesses don't make money for long periods. Working side hustles as you build your personal brand can provide an essential stream of income.
For people looking for a career change, a portfolio career can help a worker develop transferable skills for a new job.
Disadvantages of a Portfolio Career
There are several disadvantages to this kind of work, though.
One of the biggest disadvantages is the lack of financial security that comes with full-time work. Gig workers might not always have a steady stream of work, which will negatively impact their income.
This can ultimately negate any improvements you've made to your work-life balance. When a day has less work, you might end up having to work longer on other days to close any income gaps.
There also isn't much career advancement, even as you gain new skills, meaning that your income streams might not grow as you'd like them to.
Lastly, not every employer will respect a portfolio career the same way. If you're using your portfolio career while you test the job market, your skills and experience might not enhance your resume the same way that a full-time career might.
Who Should Consider a Portfolio Career?
Portfolio careers have advantages for many different people, but the primary groups that they can benefit are:
- college students looking for additional income but don't have the schedule flexibility for a full-time job
- stay-at-home parents trying to bring in additional income while their kids are at school
- people looking to start a business, but currently have no formal income
- workers trying to change careers or are in a job search
How Do You Manage Multiple Income Streams in a Portfolio Career?
Although many staples of a portfolio career include paychecks, it can be tricky to balance multiple income streams for tax purposes when you rely on freelance projects or if you're fully self-employed.
Unlike a traditional career where you will have taxes taken out of each paycheck and a W-2 mailed to you for tax filing, gig workers and self-employed people often have to calculate their taxes quarterly.
If you're going to begin a portfolio career, you might want to meet with a tax professional to figure out how much of each paycheck you need to set aside and when you need to make payments.
Why Is Being a Portfolio Careerist Such a Popular Choice?
For many younger people, the concept of working independently is alluring. As more people are aware of their mental health, and the strains that a bad work-life balance can put on it, working multiple part-time or gig jobs is more attractive than a traditional 9 to 5.
There's also a low barrier to entry as many of these jobs don't require college or even certification, which helps prevent the debt that can come from higher education.
Lastly, portfolio careers are almost remote work. Many workers, especially after the pandemic, see advantages to working at or at least based out of their own home, as opposed to an office. Some portfolio workers have part-time employment at a brick-and-mortar business, but that is far less common.
